House v. Carter-Wallace, Inc.

556 A.2d 353, 232 N.J. Super. 42, 4 I.E.R. Cas. (BNA) 587, 1989 N.J. Super. LEXIS 121
CourtNew Jersey Superior Court Appellate Division
DecidedApril 4, 1989
StatusPublished
Cited by36 cases

This text of 556 A.2d 353 (House v. Carter-Wallace, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
House v. Carter-Wallace, Inc., 556 A.2d 353, 232 N.J. Super. 42, 4 I.E.R. Cas. (BNA) 587, 1989 N.J. Super. LEXIS 121 (N.J. Ct. App. 1989).

Opinion

232 N.J. Super. 42 (1989)
556 A.2d 353

D. LARRY HOUSE, PLAINTIFF-APPELLANT,
v.
CARTER-WALLACE, INC., DEFENDANT-RESPONDENT.

Superior Court of New Jersey, Appellate Division.

Argued November 10, 1988.
Decided April 4, 1989.

*43 Before Judges BRODY, ASHBEY and SKILLMAN.

James Katz argued the cause for appellant (Tomar, Seliger, Simonoff, Adourian & O'Brien, attorneys; Ronald Graziano and James Katz, on the brief).

Keith A. Krauss argued the cause for respondent (Connell, Foley & Geiser, attorneys; Richard Catenacci and Keith A. *44 Krauss, of counsel; Maureen A. Mahoney and Keith A. Krauss, on the brief).

The opinion of the court was delivered by SKILLMAN, J.A.D.

This is a wrongful discharge case. On January 24, 1983, defendant Carter-Wallace, Inc. (Carter-Wallace) terminated plaintiff D. Larry House, the Vice President of Production and Distribution in its manufacturing division.

On August 29, 1985, House filed a four count complaint seeking reinstatement and back pay as well as compensatory and punitive damages. Count one alleged that Carter-Wallace terminated House in violation of public policy in retaliation for his opposition to the distribution of certain allegedly contaminated batches of Pearl Drops, a brand of tooth polish manufactured by Carter-Wallace. Count two alleged that Carter-Wallace breached a covenant of good faith and fair dealing implicit in its employment of House. Count three alleged that Carter-Wallace's termination of House violated procedural and substantive protections guaranteed to employees through internal company memoranda. Count four alleged that Carter-Wallace's termination of House constituted an intentional infliction of emotional distress.

On February 13, 1987, the trial court delivered an oral opinion and signed an order granting Carter-Wallace summary judgment with respect to the second, third and fourth counts of House's complaint. After the parties submitted substantial additional materials, the trial court delivered a second oral opinion on March 13, 1987 granting summary judgment on count one.[1] An order embodying this ruling was signed on March 16, 1987.

*45 On appeal, House argues in a four point brief that the trial court erred in dismissing each of the four counts of his complaint. We conclude that summary judgment was properly granted and therefore affirm.

I

On January 17, 1983, Michael J. Kopec, President of the Manufacturing Division and House's immediate superior, sent a memorandum to Daniel J. Black, the President and Chief Operating Officer of Carter-Wallace, entitled "Manufacturing Division Organizational Assessment." One section of this memorandum recommended House's termination as follows:

For the last four years I have been generally positive regarding Mr. House's performance. This view was reflected in the merit increases he's been granted from 1978 through 1981. Clearly, Mr. House is a hard working and very dedicated and loyal manager who has consistently given his best effort on behalf of the Company.
It's clear that during the course of the last one to two years very negative perceptions concerning Mr. House's performance have developed. In my view they have developed as a result of his style, as well as the performance of elements within our organization for which he is responsible.
House is very detail oriented, almost to a fault. He insists on being as intimately involved as he possibly can in almost every element within his areas of responsibility. Over the past two years, however, it's clear that his focus has been primarily on Carter Operations and insufficient attention has been given to the Plant operations, primarily those in Cranbury. On a confidential basis I was informed by a recruiter who is presently working in our behalf that during an interview for a position outside Carter-Wallace, Mr. House characterized his efforts as being broken down as 80% in Carter Operations, with the balance spread over his other areas of responsibility. Observations tend to bear this out in that he appears to spend more time with individual planners within the Carter Operations Group than he does with Mr. Osowick attending to major operating problems, concerns, and opportunities within the Cranbury Plant.
As a result of Mr. House's orientation to detail and insistence upon intimate involvement, I don't believe he has effectively delegated where delegation of authority and responsibility should have been made, and as a result, some of the key managers who report to him have neither developed nor performed up *46 to their capabilities. This is a definite concern regarding Mr. Osowick, the Director of Manufacturing at Cranbury.
In many ways Mr. House has been overprotective of those who report to him and, again, this has stifled their development, as well as having contributed to negative impressions concerning the way in which he runs his operations. He is often too quick to jump to the defensive and as a result of a sometimes parochial view of things, fails to recognize the totality of a situation. As a result, his judgment is often questioned. During the initial production campaign for Sea & Ski at Fluid Packaging Company he became so immersed in who was at fault, as well as taking all possible steps to insure that product could be made available when needed, that he failed to recognize, project, and then report the consequences of his actions as they impacted costs.
Mr. House's dedication to getting the job done on time at all costs is in many ways applaudable and even considering the Sea & Ski problems at Fluid, the course of action taken was undoubtedly the correct one. However, as I have discussed with him on a number of occasions, the real failure was in recognizing the cost implications and making them known. The same type of situation developed during the first Golden Dome promotion for aerosols. Because of equipment failures and in the final analysis inadequate equipment, an extraordinary amount of hand labor was required in order to provide the finished goods as required by Marketing. Mr. House focused solely on getting the product out on time and in the end result we found that an unfavorable variance of $250,000 had accumulated. Again, all things considered, I don't know that we would have proceeded any differently. The failure, again, was in recognizing the magnitude of potential variances and then projecting and communicating them to Management.
While the services provided the Carter Division by Mr. House and the Carter Operations group have been good, as have those provided by Distribution and Lambert Kay Operations, we have been plagued by a number of operating problems in the Cranbury Plant which have not in my opinion been addressed on either a timely or adequate basis. While recognizing that the Cranbury operations is a difficult and complex one to manage, as I look back retrospectively I can only conclude that when Mr. House and that element of his organization react to problems, there has not been an adequate amount of proaction. In other words, there has been a lack of initiative relative to taking positive steps to preclude the reoccurrence of past problems and mistakes. Numerous processing errors, primarily in weighing and ingredient addition, have resulted in considerable rework, spoiled and unusable, and a product recall.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gisela Vega v. Elizabeth Board of Education
New Jersey Superior Court App Division, 2025
MATEO v. FIRST TRANSIT INC.
D. New Jersey, 2024
MURRAY v. COUNTY OF HUDSON
D. New Jersey, 2023
HILLS v. CHAPMAN MCDONALDS
D. New Jersey, 2023
PERCELLA v. CITY OF BAYONNE
D. New Jersey, 2020
Maddox v. City of Newark
50 F. Supp. 3d 606 (D. New Jersey, 2014)
Badrinauth v. Metlife Corp.
368 F. App'x 320 (Third Circuit, 2010)
Tartaglia v. UBS PaineWebber Inc.
961 A.2d 1167 (Supreme Court of New Jersey, 2008)
Liberatore, James v. Melville Corp
168 F.3d 1326 (D.C. Circuit, 1999)
Wallace v. Skadden, Arps, Slate, Meagher & Flom
715 A.2d 873 (District of Columbia Court of Appeals, 1998)
Beck v. Tribert
711 A.2d 951 (New Jersey Superior Court App Division, 1998)
Mehlman v. Mobil Oil Corp.
707 A.2d 1000 (Supreme Court of New Jersey, 1998)
Falco v. Community Medical Center
686 A.2d 1212 (New Jersey Superior Court App Division, 1997)
Chelly v. Knoll Pharmaceuticals
685 A.2d 498 (New Jersey Superior Court App Division, 1996)
Peck v. Imedia, Inc.
679 A.2d 745 (New Jersey Superior Court App Division, 1996)
Mehlman v. Mobil Oil Corp.
676 A.2d 1143 (New Jersey Superior Court App Division, 1996)
Romano v. Brown & Williamson Tobacco
665 A.2d 1139 (New Jersey Superior Court App Division, 1995)
Sellitto v. Litton Systems, Inc.
881 F. Supp. 932 (D. New Jersey, 1994)
Young v. Schering Corp.
645 A.2d 1238 (New Jersey Superior Court App Division, 1994)
Witkowski v. Thomas J. Lipton, Inc.
643 A.2d 546 (Supreme Court of New Jersey, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
556 A.2d 353, 232 N.J. Super. 42, 4 I.E.R. Cas. (BNA) 587, 1989 N.J. Super. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/house-v-carter-wallace-inc-njsuperctappdiv-1989.